Kate Company has established the following standards for the production of its finished units:

Standard Costing Name Kate Company has established the following standards for the production of its finished units: Direct Materials (8 lbs per unit @ $4.00 per 1b) $ 32.00 Direct Labor (5 dl hrs per unit @ $16 per dl hr) 80.00 Variable Overhead (3 machine hrs per unit @ $12 per mach hr) 36.00 Fixed Overhead (3 machine hrs per unit @ $9 per mach hr*) 27.00 Total Standard Cost of one Finished Unit $ 175.00 (*the fixed overhead rate was based on a budgeted production level of 12,500 units) The following information is available for the year 2020: Actual production for the period was 12,000 units. 110,000 pounds of direct materials were purchased on account for $4.20 per pound. 94,500 pounds of direct materials were used in production. 59,200 direct labor hours were used and the actual labor rate paid was $16.50 per direct labor hour. The total actual variable overhead costs (paid in cash) were $425,000 and the total actual fixed overhead costs (paid in cash) were $335,000. 35,300 machine hours were used. 10,800 units were sold for $360 per unit cash. REQUIRED: A. Compute the eight production variances--be sure to label each variance and indicate whether the variance is favorable or unfavorable. B. Prepare ALL of the standard costing journal entries necessary for the year. C. What amount of gross profit will be reported on the 2020 income statement